Triton International Reports Second Quarter 2023 Results and Declares Quarterly Dividends
Highlights:
- Net income attributable to common shareholders for the second quarter of 2023 was
$128.7 million or$2.34 per diluted share, a decrease of 19.3% from the second quarter of 2022 and a decrease of 4.1% from the first quarter of 2023. Net income for the second quarter of 2023 included$2.6 million of transaction and other merger related costs associated with the pending transaction with Brookfield Infrastructure. - Adjusted net income for the second quarter of 2023 was
$131.3 million or$2.38 per diluted share, a decrease of 18.5% from the second quarter of 2022 and a decrease of 1.7% from the first quarter of 2023. Adjusted return on equity was 21.2% for the three months ended June 30, 2023. - Utilization averaged 97.0% in the second quarter of 2023 and was 96.6% as of July 25, 2023.
- On April 12, 2023, Triton announced it had entered into a definitive agreement to be acquired by Brookfield Infrastructure (the "Merger Agreement"). Triton has set August 24, 2023 as the date of the special general meeting of shareholders to approve the transaction. Triton expects the transaction will close in the third quarter of 2023.
Financial Results
The following table summarizes Triton’s selected key financial information:
|
(in millions, except per share data) |
|||||||||||||
|
Three Months Ended, |
|
Six Months Ended, |
|||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|||||
Total leasing revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP |
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-GAAP(1) |
|
|
|
|
|
|
|
|
|
|||||
Adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted return on equity (2) |
21.2 |
% |
|
22.5 |
% |
|
29.8 |
% |
|
21.7 |
% |
|
30.1 |
% |
(1) |
Refer to the "Use of Non-GAAP Financial Items" and "Non-GAAP Reconciliations of Adjusted Net Income" set forth below. |
|
(2) |
Refer to the "Calculation of Adjusted Return on Equity" set forth below. |
Operating Performance
"Triton delivered solid results in the second quarter of 2023," commented Brian M. Sondey, Chief Executive Officer of Triton. "We generated
Dividends
The Company's Board of Directors has declared a cash dividend payable on September 15, 2023 to holders of record at the close of business on September 8, 2023 on Triton's issued and outstanding preferred shares as follows:
Preferred Share Series |
|
Dividend Rate |
|
Dividend Per Share |
Series A Preferred Shares (NYSE:TRTNPRA) |
|
8.500% |
|
|
Series B Preferred Shares (NYSE:TRTNPRB) |
|
8.000% |
|
|
Series C Preferred Shares (NYSE:TRTNPRC) |
|
7.375% |
|
|
Series D Preferred Shares (NYSE:TRTNPRD) |
|
6.875% |
|
|
Series E Preferred Shares (NYSE:TRTNPRE) |
|
5.750% |
|
|
As previously disclosed, Triton’s preference shares will remain outstanding immediately following the closing of the Brookfield Infrastructure transaction, and Triton expects to continue paying normal quarterly dividends on these shares. Post-closing, Triton's preference shares will remain entitled to the same dividends and other preferences and privileges that they currently have, with the preference share dividends remaining an obligation of Triton. Triton expects that the preference shares will continue to be listed on the NYSE immediately following the closing.
Additionally, as permitted by the terms of the Merger Agreement, Triton has declared a quarterly cash dividend of
Transaction with Brookfield Infrastructure
On April 12, 2023, Triton announced that it had entered into a definitive agreement to be acquired by Brookfield Infrastructure Partners L.P. ("BIP") through its subsidiary Brookfield Infrastructure Corporation ("BIPC") (NYSE: "BIPC") and its institutional partners (collectively, "Brookfield Infrastructure"). Additionally, as previously announced, Triton will hold a special general meeting of shareholders on August 24, 2023 to approve the proposed transaction. The transaction is expected to close in the third quarter of 2023, subject to the satisfaction or waiver of customary closing conditions, including approval by Triton’s shareholders and receipt of clearance from the Committee on Foreign Investment in
In light of the pending transaction, Triton will not hold an earnings conference call to discuss its second quarter results and Triton will not provide a financial outlook for 2023.
About Triton International Limited
Triton International Limited is the world’s largest lessor of intermodal freight containers. With a container fleet of over 7 million twenty-foot equivalent units ("TEU"), Triton’s global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.
Utilization, Fleet, and Leasing Revenue Information
The following table summarizes the equipment fleet utilization for the periods indicated:
|
Quarter Ended |
||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
Average Utilization (1) |
97.0 % |
|
97.6 % |
|
98.4 % |
|
99.1 % |
|
99.4 % |
Ending Utilization (1) |
96.7 % |
|
97.2 % |
|
98.1 % |
|
98.8 % |
|
99.3 % |
(1) |
Utilization is computed by dividing total units on lease (in CEU) by the total units in our fleet (in CEU), excluding new units not yet leased and off-hire units designated for sale. |
The following table summarizes the equipment fleet (in Units, TEUs and CEUs):
|
Equipment Fleet in Units |
|
Equipment Fleet in TEU |
||||||||
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
Dry |
3,664,175 |
|
3,784,386 |
|
3,867,875 |
|
6,267,424 |
|
6,458,705 |
|
6,585,556 |
Refrigerated |
224,476 |
|
227,628 |
|
231,470 |
|
436,803 |
|
442,489 |
|
449,850 |
Special |
96,840 |
|
92,379 |
|
92,068 |
|
177,980 |
|
169,290 |
|
168,578 |
Tank |
12,907 |
|
12,000 |
|
11,908 |
|
12,907 |
|
12,000 |
|
11,908 |
Chassis |
27,533 |
|
27,937 |
|
23,985 |
|
52,113 |
|
52,744 |
|
44,902 |
Equipment leasing fleet |
4,025,931 |
|
4,144,330 |
|
4,227,306 |
|
6,947,227 |
|
7,135,228 |
|
7,260,794 |
Equipment trading fleet |
47,770 |
|
48,328 |
|
52,177 |
|
79,172 |
|
79,102 |
|
83,147 |
Total |
4,073,701 |
|
4,192,658 |
|
4,279,483 |
|
7,026,399 |
|
7,214,330 |
|
7,343,941 |
|
Equipment in CEU(1) |
||||
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
Operating leases |
6,997,458 |
|
7,147,332 |
|
7,248,096 |
Finance leases |
640,650 |
|
662,822 |
|
683,175 |
Equipment trading fleet |
73,732 |
|
75,697 |
|
78,936 |
Total |
7,711,840 |
|
7,885,851 |
|
8,010,207 |
(1) |
In the equipment fleet tables above, we have included total fleet count information based on CEU. CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our various equipment types to that of a 20-foot dry container. For example, the CEU ratio for a 40-foot high cube dry container is 1.70, and a 40-foot high cube refrigerated container is 7.50. These factors may differ slightly from CEU ratios used by others in the industry. |
The following table summarizes our lease portfolio by lease type, based on CEU on-hire and net book value, as of June 30, 2023:
Lease Portfolio |
|
By CEU |
|
By Net Book Value |
||
Long-term leases |
|
71.1 |
% |
|
72.4 |
% |
Finance leases |
|
9.1 |
|
|
15.6 |
|
Subtotal |
|
80.2 |
|
|
88.0 |
|
Service leases |
|
6.6 |
|
|
4.1 |
|
Expired long-term leases, non-sale age (units on hire) |
|
6.1 |
|
|
4.4 |
|
Expired long-term leases, sale-age (units on hire) |
|
7.1 |
|
|
3.5 |
|
Total |
|
100.0 |
% |
|
100.0 |
% |
The following table summarizes our leasing revenue for the periods indicated (in thousands):
|
Three Months Ended, |
|||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|||
Operating leases |
|
|
|
|
|
|||
Per diem revenues |
$ |
343,038 |
|
$ |
352,180 |
|
$ |
378,414 |
Fee and ancillary revenues |
|
16,966 |
|
|
18,168 |
|
|
13,677 |
Total operating lease revenues |
|
360,004 |
|
|
370,348 |
|
|
392,091 |
Finance leases |
|
26,535 |
|
|
27,375 |
|
|
29,517 |
Total leasing revenues |
$ |
386,539 |
|
$ |
397,723 |
|
$ |
421,608 |
Important Cautionary Information Regarding Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements." Actual results could differ materially from those projected or forecast in the forward-looking statements. The factors that could cause actual results to differ materially include the following: risks related to the satisfaction or waiver of the conditions to closing the proposed acquisition (including the failure to obtain necessary regulatory approvals and failure to obtain the requisite vote by Triton’s shareholders) in the anticipated timeframe or at all, including the possibility that the proposed acquisition does not close; the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement for the proposed acquisition, including in circumstances requiring Triton to pay a termination fee; the possibility that competing offers may be made; risks related to the ability to realize the anticipated benefits of the proposed acquisition, including the possibility that the expected benefits from the acquisition will not be realized or will not be realized within the expected time period; disruption from the transaction making it more difficult to maintain business and operational relationships; continued availability of capital and financing and rating agency actions; disruptions in the financial markets; certain restrictions during the pendency of the transaction that may impact Triton’s ability to pursue certain business opportunities or strategic transactions; risks related to diverting management’s attention from Triton’s ongoing business operation; negative effects of the acquisition announcement or the consummation of the proposed acquisition on the market price of Triton’s common shares or the class A exchangeable subordinate voting shares (the "BIPC Shares") of BIPC and/or operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the proposed acquisition, other business effects and uncertainties, including the effects of industry, market, business, economic, political or regulatory conditions; decreases in the demand for leased containers; decreases in market leasing rates for containers; difficulties in re-leasing containers after their initial fixed-term leases; customers’ decisions to buy rather than lease containers; increases in the cost of repairing and storing Triton’s off-hire containers; Triton’s dependence on a limited number of customers and suppliers; customer defaults; decreases in the selling prices of used containers; the impact of COVID-19 or future global pandemics on Triton’s business and financial results; risks resulting from the political and economic policies of
These risks, as well as other risks associated with the proposed transaction with Brookfield Infrastructure, are more fully discussed in the proxy statement/joint prospectus included in the registration statement on Form F-4 filed with the
Additional Information and Where to Find It
In connection with the proposed transaction, BIP and BIPC filed the Registration Statement, including a joint prospectus of BIP and BIPC and a definitive proxy statement of Triton. The Registration Statement was declared effective by the SEC on July 6, 2023, and the definitive proxy statement was filed by Triton on July 6, 2023. Each of BIP, BIPC and Triton may also file other relevant documents with the SEC and, in the case of BIP and BIPC, with the applicable Canadian securities regulatory authorities, regarding the proposed acquisition. This communication is not a substitute for the Registration Statements, the proxy statement/joint prospectus or any other document that BIP, BIPC or Triton may file with the SEC and, in the case of BIP and BIPC, with the applicable Canadian securities regulatory authorities, with respect to the proposed transaction. The definitive proxy statement/joint prospectus has been mailed to Triton’s shareholders of record as of July 3, 2023. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENTS, THE PROXY STATEMENT/JOINT PROSPECTUS, ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC OR APPLICABLE CANADIAN SECURITIES REGULATORY AUTHORITIES CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT BIP, BIPC, TRITON AND THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain copies of these materials (if and when they are available) and other documents containing important information about BIP, BIPC, Triton and the proposed transaction, once such documents are filed with the SEC free of charge through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC or applicable Canadian securities regulatory authorities by BIP and BIPC will be made available free of charge on BIP and BIPC's website at https://bip.brookfield.com/bip/reports-filings/regulatory-filings. Copies of documents filed with the SEC by Triton will be made available free of charge on Triton’s investor relations website at https://tritoninternational.com/investors.
No Offer or Solicitation
This communication is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law.
Participants in Solicitation
BIP, BIPC, Triton and their respective directors and certain of their executive officers and other employees may be deemed to be participants in the solicitation of proxies from Triton’s shareholders in connection with the proposed transaction. Information about Triton’s directors and executive officers is set forth in the proxy statement for Triton’s 2023 Annual Meeting of Shareholders, which was filed with the SEC on March 15, 2023. Information about BIP’s directors and executive officers is set forth in BIP’s Annual Report on Form 20-F, which was filed with the SEC on March 17, 2023 and information about BIPC's directors and executive officers is set forth in BIPC's Annual Report on Form 20-F, which was filed with the SEC on March 17, 2023. Investors may obtain additional information regarding the interest of such participants by reading the proxy statement/joint prospectus and other relevant materials regarding the acquisition that have been filed with the SEC in respect of the proposed transaction. These documents can be obtained free of charge from the sources indicated above in "Additional Information and Where to Find It".
-Financial Tables Follow- TRITON INTERNATIONAL LIMITED Consolidated Balance Sheets (In thousands, except share data) (Unaudited) |
|||||||
|
June 30, 2023 |
|
December 31, 2022 |
||||
ASSETS: |
|
|
|
||||
Leasing equipment, net of accumulated depreciation of |
$ |
9,131,457 |
|
|
$ |
9,530,396 |
|
Net investment in finance leases |
|
1,557,017 |
|
|
|
1,639,831 |
|
Equipment held for sale |
|
195,763 |
|
|
|
138,506 |
|
Revenue earning assets |
|
10,884,237 |
|
|
|
11,308,733 |
|
Cash and cash equivalents |
|
55,251 |
|
|
|
83,227 |
|
Restricted cash |
|
102,733 |
|
|
|
103,082 |
|
Accounts receivable, net of allowances of |
|
255,524 |
|
|
|
226,554 |
|
Goodwill |
|
236,665 |
|
|
|
236,665 |
|
Lease intangibles, net of accumulated amortization of |
|
4,039 |
|
|
|
6,620 |
|
Other assets |
|
44,698 |
|
|
|
28,383 |
|
Fair value of derivative instruments |
|
123,674 |
|
|
|
115,994 |
|
Total assets |
$ |
11,706,821 |
|
|
$ |
12,109,258 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
||||
Equipment purchases payable |
$ |
26,783 |
|
|
$ |
11,817 |
|
Fair value of derivative instruments |
|
2,414 |
|
|
|
2,117 |
|
Deferred revenue |
|
297,665 |
|
|
|
333,260 |
|
Accounts payable and other accrued expenses |
|
69,491 |
|
|
|
71,253 |
|
Net deferred income tax liability |
|
415,826 |
|
|
|
411,628 |
|
Debt, net of unamortized costs of |
|
7,624,750 |
|
|
|
8,074,820 |
|
Total liabilities |
|
8,436,929 |
|
|
|
8,904,895 |
|
|
|
|
|
||||
Shareholders' equity: |
|
|
|
||||
Preferred shares, |
|
730,000 |
|
|
|
730,000 |
|
Common shares, |
|
814 |
|
|
|
814 |
|
Undesignated shares, |
|
— |
|
|
|
— |
|
Treasury shares, at cost, 26,379,401 and 24,494,785 shares, respectively |
|
(1,203,220 |
) |
|
|
(1,077,559 |
) |
Additional paid-in capital |
|
909,211 |
|
|
|
909,911 |
|
Accumulated earnings |
|
2,719,556 |
|
|
|
2,531,928 |
|
Accumulated other comprehensive income (loss) |
|
113,531 |
|
|
|
109,269 |
|
Total shareholders' equity |
|
3,269,892 |
|
|
|
3,204,363 |
|
Total liabilities and shareholders' equity |
$ |
11,706,821 |
|
|
$ |
12,109,258 |
|
TRITON INTERNATIONAL LIMITED Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Leasing revenues: |
|
|
|
|
|
|
|
||||||||
Operating leases |
$ |
360,004 |
|
|
$ |
392,091 |
|
|
$ |
730,352 |
|
|
$ |
781,036 |
|
Finance leases |
|
26,535 |
|
|
|
29,517 |
|
|
|
53,910 |
|
|
|
57,660 |
|
Total leasing revenues |
|
386,539 |
|
|
|
421,608 |
|
|
|
784,262 |
|
|
|
838,696 |
|
|
|
|
|
|
|
|
|
||||||||
Equipment trading revenues |
|
26,426 |
|
|
|
48,108 |
|
|
|
45,528 |
|
|
|
82,228 |
|
Equipment trading expenses |
|
(24,512 |
) |
|
|
(41,706 |
) |
|
|
(42,545 |
) |
|
|
(71,685 |
) |
Trading margin |
|
1,914 |
|
|
|
6,402 |
|
|
|
2,983 |
|
|
|
10,543 |
|
|
|
|
|
|
|
|
|
||||||||
Net gain on sale of leasing equipment |
|
21,583 |
|
|
|
35,072 |
|
|
|
37,083 |
|
|
|
64,041 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
146,880 |
|
|
|
160,922 |
|
|
|
295,315 |
|
|
|
321,638 |
|
Direct operating expenses |
|
24,837 |
|
|
|
7,398 |
|
|
|
48,078 |
|
|
|
13,618 |
|
Administrative expenses |
|
23,397 |
|
|
|
24,968 |
|
|
|
46,261 |
|
|
|
46,268 |
|
Transaction and other costs |
|
2,579 |
|
|
|
— |
|
|
|
2,579 |
|
|
|
— |
|
Provision (reversal) for doubtful accounts |
|
(760 |
) |
|
|
46 |
|
|
|
(2,557 |
) |
|
|
19 |
|
Total operating expenses |
|
196,933 |
|
|
|
193,334 |
|
|
|
389,676 |
|
|
|
381,543 |
|
Operating income (loss) |
|
213,103 |
|
|
|
269,748 |
|
|
|
434,652 |
|
|
|
531,737 |
|
Other expenses: |
|
|
|
|
|
|
|
||||||||
Interest and debt expense |
|
57,314 |
|
|
|
54,659 |
|
|
|
116,138 |
|
|
|
109,169 |
|
Unrealized (gain) loss on derivative instruments, net |
|
— |
|
|
|
100 |
|
|
|
(4 |
) |
|
|
(339 |
) |
Debt termination expense |
|
— |
|
|
|
1,627 |
|
|
|
— |
|
|
|
1,663 |
|
Other (income) expense, net |
|
(269 |
) |
|
|
(189 |
) |
|
|
(313 |
) |
|
|
(497 |
) |
Total other expenses |
|
57,045 |
|
|
|
56,197 |
|
|
|
115,821 |
|
|
|
109,996 |
|
Income (loss) before income taxes |
|
156,058 |
|
|
|
213,551 |
|
|
|
318,831 |
|
|
|
421,741 |
|
Income tax expense (benefit) |
|
14,296 |
|
|
|
15,932 |
|
|
|
27,256 |
|
|
|
29,864 |
|
Net income (loss) |
$ |
141,762 |
|
|
$ |
197,619 |
|
|
$ |
291,575 |
|
|
$ |
391,877 |
|
Less: dividend on preferred shares |
|
13,028 |
|
|
|
13,028 |
|
|
|
26,056 |
|
|
|
26,056 |
|
Net income (loss) attributable to common shareholders |
$ |
128,734 |
|
|
$ |
184,591 |
|
|
$ |
265,519 |
|
|
$ |
365,821 |
|
Net income per common share—Basic |
$ |
2.35 |
|
|
$ |
2.91 |
|
|
$ |
4.80 |
|
|
$ |
5.70 |
|
Net income per common share—Diluted |
$ |
2.34 |
|
|
$ |
2.90 |
|
|
$ |
4.77 |
|
|
$ |
5.68 |
|
Cash dividends paid per common share |
$ |
0.70 |
|
|
$ |
0.65 |
|
|
$ |
1.40 |
|
|
$ |
1.30 |
|
Weighted average number of common shares outstanding—Basic |
|
54,776 |
|
|
|
63,457 |
|
|
|
55,327 |
|
|
|
64,168 |
|
Dilutive restricted shares |
|
323 |
|
|
|
288 |
|
|
|
289 |
|
|
|
277 |
|
Weighted average number of common shares outstanding—Diluted |
|
55,099 |
|
|
|
63,745 |
|
|
|
55,616 |
|
|
|
64,445 |
|
TRITON INTERNATIONAL LIMITED Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
291,575 |
|
|
$ |
391,877 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
295,315 |
|
|
|
321,638 |
|
Amortization of deferred debt cost and other debt related amortization |
|
3,939 |
|
|
|
6,541 |
|
Lease related amortization |
|
2,797 |
|
|
|
5,893 |
|
Share-based compensation expense |
|
4,780 |
|
|
|
6,247 |
|
Net (gain) loss on sale of leasing equipment |
|
(37,083 |
) |
|
|
(64,041 |
) |
Unrealized (gain) loss on derivative instruments |
|
(4 |
) |
|
|
(339 |
) |
Debt termination expense |
|
— |
|
|
|
1,663 |
|
Deferred income taxes |
|
5,234 |
|
|
|
12,542 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(31,235 |
) |
|
|
(1,459 |
) |
Deferred revenue |
|
(35,595 |
) |
|
|
266,802 |
|
Accounts payable and other accrued expenses |
|
1,654 |
|
|
|
(2,957 |
) |
Net equipment sold (purchased) for resale activity |
|
1,997 |
|
|
|
(14,015 |
) |
Cash received (paid) for settlement of interest rate swaps |
|
— |
|
|
|
16,588 |
|
Cash collections on finance lease receivables, net of income earned |
|
115,523 |
|
|
|
72,004 |
|
Other assets |
|
(11,288 |
) |
|
|
18,471 |
|
Net cash provided by (used in) operating activities |
|
607,609 |
|
|
|
1,037,455 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of leasing equipment and investments in finance leases |
|
(119,514 |
) |
|
|
(750,021 |
) |
Proceeds from sale of equipment, net of selling costs |
|
180,312 |
|
|
|
126,818 |
|
Other |
|
2 |
|
|
|
(405 |
) |
Net cash provided by (used in) investing activities |
|
60,800 |
|
|
|
(623,608 |
) |
Cash flows from financing activities: |
|
|
|
||||
Purchases of treasury shares |
|
(129,776 |
) |
|
|
(187,967 |
) |
Debt issuance costs |
|
— |
|
|
|
(8,348 |
) |
Borrowings under debt facilities |
|
70,000 |
|
|
|
1,505,600 |
|
Payments under debt facilities and finance lease obligations |
|
(528,213 |
) |
|
|
(1,659,002 |
) |
Dividends paid on preferred shares |
|
(26,056 |
) |
|
|
(26,056 |
) |
Dividends paid on common shares |
|
(77,209 |
) |
|
|
(82,878 |
) |
Other |
|
(5,480 |
) |
|
|
(5,629 |
) |
Net cash provided by (used in) financing activities |
|
(696,734 |
) |
|
|
(464,280 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
$ |
(28,325 |
) |
|
$ |
(50,433 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
186,309 |
|
|
|
230,538 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
157,984 |
|
|
$ |
180,105 |
|
Supplemental disclosures: |
|
|
|
||||
Interest paid |
$ |
112,884 |
|
|
$ |
94,321 |
|
Income taxes paid (refunded) |
$ |
24,754 |
|
|
$ |
17,538 |
|
Right-of-use asset for leased property |
$ |
791 |
|
|
$ |
210 |
|
Supplemental non-cash investing activities: |
|
|
|
||||
Equipment purchases payable |
$ |
26,783 |
|
|
$ |
43,348 |
|
Use of Non-GAAP Financial Items
We use the terms "Adjusted net income" and "Adjusted return on equity" throughout this press release.
Adjusted net income and Adjusted return on equity are not items presented in accordance with
Adjusted net income is adjusted for certain items management believes are not representative of our operating performance. Adjusted net income is defined as net income attributable to common shareholders excluding debt termination expenses net of tax, unrealized gains and losses on derivative instruments net of tax, and foreign and other income tax adjustments. Additionally, Adjusted net income excludes costs associated with the Brookfield Infrastructure transaction as they are not normal, recurring operating expenses.
We believe that Adjusted net income is useful to an investor in evaluating our operating performance because this item:
- is widely used by securities analysts and investors to measure a company's operating performance;
- helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing certain non-routine events which we do not expect to occur in the future; and
- is used by our management for various purposes, including as measures of operating performance and liquidity, to assist in comparing performance from period to period on a consistent basis, in presentations to our board of directors concerning our financial performance and as a basis for strategic planning and forecasting.
We have provided a reconciliation of Net income attributable to common shareholders, the most directly comparable
Additionally, the calculation for Adjusted return on equity is adjusted annualized net income divided by average shareholders' equity. Management utilizes Adjusted return on equity in evaluating how much profit the Company generates on the shareholders' equity in the Company and believes it is useful for comparing the profitability of companies in the same industry.
Certain forward-looking information included in this press release is provided only on a non-GAAP basis without a reconciliation of these measures to the mostly directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. These items depend on highly variable factors, many of which may not be in our control, and which could vary significantly from future GAAP financial results.
TRITON INTERNATIONAL LIMITED Non-GAAP Reconciliations of Adjusted Net Income (In thousands, except per share amounts) |
|||||||||||||||||
|
|
|
|
|
|
||||||||||||
|
Three Months Ended, |
|
Six Months Ended, |
||||||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
||||||||
Net income attributable to common shareholders |
$ |
128,734 |
|
$ |
136,785 |
|
|
$ |
184,591 |
|
$ |
265,519 |
|
|
$ |
365,821 |
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivative instruments, net |
|
— |
|
|
(4 |
) |
|
|
139 |
|
|
(4 |
) |
|
|
(300 |
) |
Transaction and other costs, net |
|
2,575 |
|
|
— |
|
|
|
— |
|
|
2,575 |
|
|
|
— |
|
Debt termination expense |
|
— |
|
|
— |
|
|
|
1,304 |
|
|
— |
|
|
|
1,340 |
|
Tax benefit from vesting of restricted shares |
|
— |
|
|
(692 |
) |
|
|
— |
|
|
(692 |
) |
|
|
(1,184 |
) |
Adjusted net income |
$ |
131,309 |
|
$ |
136,089 |
|
|
$ |
186,034 |
|
$ |
267,398 |
|
|
$ |
365,677 |
|
Adjusted net income per common share—Diluted |
$ |
2.38 |
|
$ |
2.42 |
|
|
$ |
2.92 |
|
$ |
4.81 |
|
|
$ |
5.67 |
|
Weighted average number of common shares outstanding—Diluted |
|
55,099 |
|
|
56,140 |
|
|
|
63,745 |
|
|
55,616 |
|
|
|
64,445 |
|
TRITON INTERNATIONAL LIMITED Calculation of Adjusted Return on Equity (In thousands) |
|||||||||||||||||||
|
|
|
|
||||||||||||||||
|
Three Months Ended, |
|
Six Months Ended, |
||||||||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
||||||||||
Adjusted net income |
$ |
131,309 |
|
|
$ |
136,089 |
|
|
$ |
186,034 |
|
|
$ |
267,398 |
|
|
$ |
365,677 |
|
Annualized Adjusted net income (1) |
$ |
526,679 |
|
|
$ |
551,917 |
|
|
$ |
746,180 |
|
|
$ |
539,228 |
|
|
$ |
737,415 |
|
Average Shareholders' equity (2)(3) |
$ |
2,483,826 |
|
|
$ |
2,451,062 |
|
|
$ |
2,507,427 |
|
|
$ |
2,480,672 |
|
|
$ |
2,449,855 |
|
Adjusted return on equity |
|
21.2 |
% |
|
|
22.5 |
% |
|
|
29.8 |
% |
|
|
21.7 |
% |
|
|
30.1 |
% |
(1) |
Annualized Adjusted net income was calculated based on calendar days per quarter. |
|
(2) |
Average Shareholders' equity was calculated using the quarter’s beginning and ending Shareholder’s equity for the three-month ended periods, and the ending Shareholders' equity from each quarter in the current year and December 31 of the previous year for the six-month ended periods. |
|
(3) |
Average Shareholders' equity was adjusted to exclude preferred shares. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230728634783/en/
Andrew Kohl
Vice President
Corporate Strategy & Investor Relations
[email protected]
+1 (914) 697-2900
Source: Triton International Limited